EUR Weekly Market Update
Updated 18 Jul 2026 • 23:46 GMT
European inflation easing to 2.8% has supported the ECB's decision to pause interest rate hikes, with the possibility of a renewal in September still open. ECB President Lagarde highlighted the resilience of Europe, maintaining a cautious stance on future rate decisions. Geopolitical tensions in the Middle East, particularly around the Strait of Hormuz, have led to increased demand for safe-haven currencies, pressuring the euro.
Key watchpoints:
- Monitor ECB's upcoming meeting on July 23 for rate guidance.
- Observe ongoing geopolitical developments affecting risk sentiment.
- Track EUR/USD movements, especially in relation to US monetary policy changes.